Writing in Time magazine in 2009, Geithner said Lagarde had shown "what it takes to break down barriers" by becoming the first female Group of Seven finance minister and that he admired her "lightning-quick wit, genuine warmth and ability to bridge divides while remaining fiercely loyal to French interests."
"Rarely do the names Descartes and Voltaire emerge during a debate on global economic policy. But when they do, it often means Christine Lagarde is using philosophy to drive home a sophisticated point about the markets," Geithner wrote.
Lagarde's chances may hinge on how she resolved a two- decade-old dispute involving a supporter of President Nicolas Sarkozy. The Cour de Justice de la Republique, which oversees ministers' actions in office, has until June 10 to decide whether to investigate if Lagarde abused her powers in agreeing in 2007 to send the case to arbitration. It resulted in a 385 million-euro ($551 million) award to Bernard Tapie, a former Socialist minister who endorsed Sarkozy's presidential effort.
Arbitration Decision
The matter stems from the 1993 sale of Tapie's Adidas AG, which was handled by then-state-owned Credit Lyonnais SA. At the time, Lagarde was a partner with the Chicago-based law firm Baker & McKenzie LLP, 12 years before she joined the government. The minister has rejected accusations her decision to take the matter to arbitration and not appeal the award was a reward for Tapie's support of Sarkozy.
Europe is likely to succeed in getting Lagarde the job as developing nations are too divided to back a single candidate, said economist Nouriel Roubini.
"The Europeans are going to be united in wanting a European, and I think the European candidate is going to be Christine Lagarde," Roubini, who predicted the recent global financial crisis, said in an interview on Bloomberg Television's "Last Word" with Andrea Catherwood yesterday.